1 Quality Management Requirements

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QUALITY MANAGEMENT- INTRODUCTION -

Businesses of all types are using quality managementtoimprove every aspect of their operationsand ultimately!ecoming more competitive and pro"ta!le#

INTRODUCTION

WHAT IS QUALITY MANAGEMENT

THE CONCEPTS

CASE STUDY

$ MORTGAGE EXPRESS

CASE STUDY

$ APPORT LIMITED

IMPLEMENTING QUALITY MANAGEMENT

IN YOUR BUSINESS

Introduction

%o& &ell is your !usiness performing'

%aving !een developed in manufacturing quality management hasgro&n into a &ay of helping any !usiness improve#

It aims to ma(es sure that at every levelof an organi)ation* things are

done right "rst time#

+uality is for, ny !usiness interested in reforming the &ay it &or(s toimprove pro"ta!ility#

.hat quality management are /the !asic concepts and methods0 andguidance on ho& to approach !usiness1process1quality improvementpro2ects'

.hat is quality management'

Originally developed as a &ay of improving manufacturing processesquality management is no& a complete !usiness philosophy# Byemphasi)ing quality at all stages of your !usinessit can help improverelia!ility delivery priceperformanceand ultimately pro"ta!ility#

There is also a considera!le !ody of evidence that suggests thatquality $ a!ove relia!ility price and delivery $ is the most importantcompetitive &eapon that !usinesses have#


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It can !e used to &in and retain customers recruit the !est peoplegain resources and ena!le organi)ations to compete more e3ectively#

This document loo(s at some of the (ey concepts and methods in

quality management and e4amines ho& !usinesses of all si)es areusing them#

WHY SHOULD YOU CARE ABOUT IT?

+uality management has an image pro!lem# The phrase tends tocon2ure up visions of management gurus comple4 academic theoriesand huge automated production lines#

In fact quality management involves formali)ing the things that most!usinesses do already# There are many di3erent quality management

methodologies !ut all are !ased on t&o fundamental assumptions,$ .hatever the !usiness process quality can !e assessed and

managed* and$ The failure to address quality costs a !usiness "nancially and

reduces its competitiveness#

Increasingly !usinesses in all industries are responding to this message$ often at the request of large supply chain partners &ho encouragesuppliers to adopt quality management# The result can !e,

$ a clearer !usiness focus*$ improved e5ciency*

$ increased customer satisfaction*$ improved communications* and$ increased cash-6o& and the potential for pro"t#

Ta(en together these can also deliver an improved reputation $something that can !e an incredi!ly po&erful !usiness asset#

Read on to "nd out more a!out ho& quality management &or(s andho& to apply it to your !usiness#

The concepts

+uality management goes far &iderthan 2ust assuring product orservice quality $ it is a &ay of managing people and !usinessprocesses to ensure complete customer satisfaction at every stageinternally and e4ternally#


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Com!ined &ith e3ective leadership it aims to get an organi)ationdoing the right things right "rst time#

This section e4plains more a!out &hat quality management involves!y loo(ing at some of the concepts that underpin it# 7ore detailed

documents e4ploring the issues !elo& are also availa!le from the DTI#$ +uality$ +uality management systems$ 8rocess understanding$ 8rocess improvement$ 7easurement$ 8eople

QUALITY

The most important concept is quality itself# .hat does it mean'

frequently used de"nition is 9delighting the customer !y fully meetingtheir needs and e4pectations:#

In other &ords &hat ;quality< is &ill !e di3erent for each !usiness# =irstthe organi)ation needs to (no& &hat these needs and e4pectationsareand !e a!le to measure its a!ility to meet them# This may includeperformance appearance availa!ility delivery relia!ilitymaintaina!ility cost e3ectiveness and price#

QUALITY MANAGEMENT SYSTEMS

quality management system is a set of coordinated activitiesto helpan organi)ation achieve quality improvements and then !uild on them#It does this !y ensuring that t&o important sets of requirements aremet,

$ customer reu!reme"ts # !y !uilding con"dence in the a!ilityof the organi)ation to deliver consistently products or servicethat meet customers< needs and e4pectations#

$ or$%"!&%t!o"%' reu!reme"ts # !y ensuring that that theavaila!le resources $ materials human technology andinformation $ are used as e5ciently and cost-e3ectively aspossi!le#

PROCESS UNDERSTANDING

In the simplest terms a process is any activity that adds valuein anorgani)ation# >verything &e do is a process and ultimately forms partof the net&or( of processes that ma(es up the &hole organi)ation#


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In every organi)ation there are some very large processes &hich are/can !e !ro(en do&n into groups of smaller processes called (ey orcore !usinessprocesses# These must !e carried out &ellif anorgani)ation is to achieve its mission and o!2ectives#

8rocess understanding is a (ey part of overall process improvement/see !elo&0# It involves e4amining and mapping the processes in a!usinessto understand ho& &ell it is performing# 8rocesses arecommonly documented under the follo&ing headings, title purposescope inputs outputs controls and resources#

PROCESS IMPRO(EMENT

The central aim of a ne&ly introduced quality management system isto identify underperforming processesand improve them#

This can !e costly time consuming and disruptive so it


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Traditionally organi)ations have measured performance in "nancialterms#

%o&ever quality management requires a more sophisticated approachthat uses not only cost accountinginformation !ut also measures the

improvements seen !y the customerand the results delivered to othersta(eholders#

PEOPLE

The comple4ity of most processes in an organi)ation places them!eyond the control of any one individual# This means that the onlye5cient &ay to tac(le process improvement is through team&or(#

?enior managers need to nurture a culture of quality $ !uilding trustimproving communicationand encouraging contri!utionsfrom

everyone#________________________________________________________________________

CASE/STUDY

MORTGAGE EXPRESS

7ortgage >4press is the specialist lending arm of the Bradford @Bingley Building ?ociety# It is !ased in Ne& Barnet north Aondon andemploys sta3# It sells mortgages to customers via mortgageadvisors &ho recommend its products to customers throughpartnerships &ith ma2or mortgage providers and direct to consumers#

OBE>CTIF>?.hen 7ortgage >4press "rst em!raced total quality and the Business>4cellence 7odelG in HH the company &as no longer ta(ing on ne&!usiness and &as &inding do&n for closure# The company performedits "rst self-assessment in HH returned to pro"t in HH &as short-listed for the HHJ UK Business >4cellence &ards and eventually &onan a&ard in HHL#

In HH !ad de!ts and the decline in the UK housing mar(et causedthe company record losses of more than Mm# t that time no ne&!usiness &as !eing ta(en on and the company had &ithdra&n fromthe mar(et# ?ta3 &ere !eing redeployed into the gro&ing;7anagement of rrears< area to !ring the arrears pro!lem undercontrol#

?OAUTION culture of continuous improvement &as introduced through a num!erof initiatives,


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8erhaps the !est-(no&n quality management system I?O H is afamily of quality standards created and maintained !y the InternationalOrgani)ation for ?tandardi)ation#

The most recent set of standards are,

$ I?O H, $ +7?s $ =undamentals and voca!ulary# This is anintroduction to the I?O H family#$ I?O H, $ +uality 7anagement ?ystems $ Requirements#

This is the core mem!er of the I?O H family as it speci"esthe (ey requirements of an e5cient e3ective and adapta!le+7?#

$ I?O HQ, $ Puidelines for performance improvement# Thisfocuses on the processes that quality management systemsshould em!race#

These standards originated from a regular si4-year revie& and are

intended to !e generic and adapta!le to all (inds of organi)ations#

They are !uilt around !usiness processes &ith a strong emphasis onimprovementand a focus on meeting the needs of customers# I?OH recogni)es that customers play a signi"cant role in de"ningrequirements as inputs and it stresses that monitoring customersatisfaction is central to determining &hether customer requirementshave !een met#

THE E2QM EXCELLENCE MODELThe >4cellence 7odel &as developed !y the >uropean =oundation for

+uality 7anagement and is promoted in the UK as Business >4cellence!y the British +uality =oundation /B+=0#

?ince its introduction in HH the 7odel has !ecome the most popularimprovement frame&or( in >urope used !y more than organi)ations# Regardless of sector si)e structure or maturityorgani)ations need to esta!lish an appropriate management system ifthey are to !e successful and the >4cellence 7odel is a practical toolto help them do this !y measuring &here they are on the path toe4cellence helping them understand the gaps and then stimulatingsolutions#

The >4cellence 7odel uses a mi4ture of qualitative and quantitativemeasures underpinned !y eight ;fundamental concepts


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$ Le%)ers.!* %") co"st%"c3 o+ *ur*ose # the !ehavior of anorgani)ation


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R>?UAT?Bene"ts include,

$ The design and manufacture of an assem!ly 2ig &hich cost MHJ!ut saves la!or costs of M per year# No& operators canassem!le more products each day reducing overtime and &aste

and creating !etter products#$ change in layout of a conveyor system ena!ling operators to

&or( more comforta!ly and e3ectively at minimal cost to the!usiness#

$ ?ourcing alternative ra& materials there!y getting morecompetitive prices and creating more !ene"cial relationships&ith suppliers# Cost savings arising from this can either !ereinvested in the !usiness or passed on to customers#

Current pro2ects include further streamlining of assem!ly operationautomation of certain moulding tools and evaluation of services toensure !est value for money# It is thought that all of these initiatives

&ill !ene"t employees and customers ali(e#

Information a!out these improvements and current "nancialperformance are communicated to employees every three months inface-to-face sessions# ?ta3 is also informed a!out future developmentsand plans and are given the opportunity to as( questions#

T%> A?T .ORDThe ne4t phase of the improvement plan involves the introduction ofstructured training for sta3# more 6e4i!le ful"lled and highly s(illed&or(force &ill ena!le ppor to continue to gro& increase its productrange and techniques and provide a higher standard of customer

service#

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Implementing quality management in your !usiness

.hatever your si)e and type of !usiness and &hatever the !usinessprocess $ delivery design manufacturing or customer service $reducing error !y improving the &ay things are done can havedramatic !ene"ts#

central assumption of quality management &hich is supported !y anum!er of studies is that &hen &ell e4ecuted it pays for itself# This is!ecause quality management is a practical and focused &ay ofpromoting !est practice that concentrates its e3orts &here thegreatest !ene"ts &ill occur#


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.hen as(ed if a !usiness can a3ord to implement qualitymanagement practitioners often respond ;can you a3ord not to'2or more !"+orm%t!o" o"Achieving best practice in your business: Fisit our &e!site at ---

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1 Quality Management Requirements